Hong Kong has seen massive interest from virtual asset-related firms as the city pushes towards reclaiming its status as a global crypto hub with a more favorable regulatory stance.
Christian Hui, Financial Services and Treasury Secretary of Hong Kong, Said During a recent speech that more than 80 crypto-related companies have shown interest in establishing a presence in the city from October 2022.
“By the end of February 2023, Invest Hong Kong has received expressions of interest from over 80 virtual asset related Mainland and overseas companies to establish their presence in Hong Kong.”
Hui elaborated that these companies include virtual asset trading platforms, blockchain infrastructure companies, blockchain network security companies, virtual currency wallet and payment companies, as well as other projects operating in the Web3 space.
While the majority of these firms are from China, some other companies that have shown interest in re-establishing in Hong Kong are from Canada, European Union (European Union) countries, Singapore, the UK and the US.
Hui said these companies are interested in learning more about the “implementation details” of the policy statement, regulatory requirements, visa requirements for talent entry, and targeted support measures for the virtual assets and Web3 sector.
The jump in interest came after the Hong Kong government Free Its policy statement on the development of virtual assets, in October 2022, clarifies its stance on virtual assets.
Hong Kong “Well Positioned” to Become a Global Crypto Hub
Hong Kong, once the crypto hub of the world, started losing Its position in mid-2022 is considered more favorable for the crypto industry amid growing concern about the city’s regulatory ambiguity over crypto and the emergence of potential rivals such as Singapore and Dubai.
However, the city has recently taken a more crypto-friendly stance in order to attract crypto companies again.
In February, the Securities and Futures Commission (SFC) of Hong Kong published A consultation paper on its proposed regulatory regime for crypto trading platforms. The new regulations are due to take effect from June and will require all crypto platforms to be licensed by the SFC.
The regulator also said that retail investors will be allowed to trade certain “large-cap tokens” on licensed exchanges, given that safeguards such as knowledge tests, risk profiles and appropriate limits on exposure are put in place.
Earlier the Hong Kong government had allowed Retail investors have access to CME Group (CME) exchange-traded funds (ETFs) that invest in bitcoin and ether futures.
“Hong Kong is well positioned to become a major hub for Web3 in Asia and beyond, and we attach great importance to virtual assets (VA) and Web3,” Hui said during the speech. He also mentioned about this year’s budget allocation HK$50 million ($6.4 million) To promote the Web3 area of the city.
“The government has a high-level commitment to develop this sector and provide a comprehensive support system to enterprises that are pioneers and start-ups in this sector like all of you.”